Thursday, Jul 22, 2010
Does quantitative easing result in inflation in all cases
Gold subject: The bitter irony of quantitative easing
There appears to be a glaring misconception floating around, namely, that deflation is impossible in a fiat-money system, on the grounds that there is no limit, in principle, to how much new money a government can create, and that therefore deflation can always be kept at bay with quantitative easing. This is completely wrong: quantitative easing exacerbates deflation in the very assets that governments were hoping to inflate.
Posted by fuzzy @ 06:39 PM (215 views) Add Comment
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